Profitability and margins

Profitability and retail price. The all important aspect of any business is of course the profitability. ‘How much money can I make’ is probably the question at the forefront of your mind right now, and the answer with Shave Ice is a good one, quite a lot of money! Profit, bunce, margin- call it what you want but it’s the most important figure in business. Getting involved with the shave ice company means you’ll soon be reaping the benefits of these profits. ‘So what are these profits?’ you cry! Well here are the all important figures…. First of all lets hit you with the typical retail price figures for all the Shave Ice brands. Depending on location, business type, event and customer profile these RRP’s may vary. Please contact us if you need advice on setting RRP’s.

Hawaiian Ice – £2.00 – £3.00

Sno-Tubz – £2.00 – £3.50

Snow Cones – £1.50 – 2.00

Now those all important profit figures…Shave Ice has put together a hopefully simple table to compare and show all the important information you need to know. To keep things simple – I’m a trader and not VAT registered – what’s my GPM? ( gross profit margin)

————- TABLE——————

“Horses for courses”RRP:

Recommended retail price is the suggested selling price of a product. These tend to vary depending on location and customer profile.

COST:

This is what the product costs me. COG. Cost of goods.

PROFIT:

What’s left when you subtract the cost away from the selling price

GPM:

Gross profit margins. The higher the GPM the better. You can lower this for faster selling products.

At The Shave Ice Company we realise that numbers and figures are not everybody’s cup of tea, but really is one of the fundimentals of business, so if you are confused, puzzled or just have a questions please don’t hesitate to contact us with the below contact form and we will do our best to advise.